At Accenture, we believe the future of banking is the Everyday Bank—it’s the idea that banks place themselves into the daily interactions of their customers, helping to balance out the asymmetry of information that can put consumers at a disadvantage.
Why is Digital So Important?
Digital is at the core of this model, enabling customers to use their bank accounts as a part of any payment or purchasing experience, whether that is buying a car, a newspaper, a bus ticket, groceries or something online. Historically, each of these situations has required different types of payments, but with digital, we now have the opportunity to create a consistent experience across these different payment scenarios.
As well as providing a consistent experience, banks also need to be able to integrate things like loyalty and rewards into payments, and they need to allow customers to make payments in real time—not just so they can see real-time balances at the point of payment, but also to allow them to make a payment against a payment. This scenario is not just important to consumers, it’s also critical to small businesses, which will only pay their suppliers when they know payments have come in.
What Does it Mean for Banks?
For banks, the future of everyday payments and digital technologies will include:
- Implementing card innovations. Cards are a huge part of consumer retail payments. Banks must consider how they can migrate card payments to the digital world—by de-materializing cards through digital wallets and other technologies.
- Exposing the core payments system through APIs. Many banks have re-platformed and simplified their core payment systems, which has positioned them well to prepare for the digital era. The next step is to expose payment systems through APIs to third parties so that third parties such as merchants can embed the APIs in their websites and their applications. This will allow consumers to perform their banking and payments through merchant apps and websites rather than through banking-specific sites.
In a nutshell, when we talk about Everyday Payments, we’re referring to digitally enabling accounts, so that banks can go to where the consumers operate rather than expecting customers to come to them. Furthermore, these same concepts can be applied in the corporate and small- to medium-sized enterprise world.
For more on Everyday Payments, see our positioning paper.